Lyca Mobile, the mobile virtual network operator (MVNO) is planning to trim its workforce in the UK by 90 per cent amidst various challenges.
As per The Guardian, the company has informed its employees at its London headquarters of the downsizing plans, which are likely to affect at least 300 jobs. That means, the headcount in the UK will go down to less than 50. While some services will be discontinued in the UK, others will be moved to India as part of a cost-saving exercise, says the report.
The company has operations spread across 22 countries, with over 16 million customers using its services. The firm, founded in 2006, offers pay-as-you go SIM cards.
It is pertinent to mention here that Lyca Mobile has been grappling with rising inflation, outdated technology and stiff competition, in addition to redundant / overlapping processes leading to operational inefficiency within the Indian and British arms of the firm.
It is reported that Lyca Mobile incurred losses to the tune of $30 million in 2022. To add to its challenges, it had been embroiled in a legal battle with His Majesty’s Revenue & Customs (HMRC), Britain’s tax collection authority, over non-payment of value-added tax or VAT bills amounting to about $64.6 million. Earlier this year, it lost the case to HMRC. In France too the company has been reportedly involved in a $10.5 million VAT fraud case.
